Coiled Spring Capital update July 6th, 2022

In our weekend report we highlighted a few stocks/ideas we would consider long that were setting up for further extension, even if the market were to remain choppy. We are still in support of those and see further upside.

China continues to be a focus and now the index is now up +30% since our call on May 23. This still looks poised to lead and we would focus on the names we've been highlighting.

$BABA is our large cap favorite which is now up +43% since May 23. The 200 day is the next area of obvious resistance and seemingly wants to break higher. $130 is the next pivot to contend with.

$BABA Fib retracements from the ATH still a good distance before having to worry about them. We have written many times that China is separating itself from the rest of the world in fighting inflation and is actually increasing liquidity vs everyone else. This trend should continue.

We have also been discussing ARKK as something to watch as it did not make a new low with the index and now is breaking this DTL and closed above the 50day. This is a good barometer of risk.

Another one of the ETF's we highlighted over the weekend was up +3.3% yesterday and looking to be taking leadership in the market.

July historically see's positive seasonality into Q2 earnings season but this earnings season is going to be tough. How much is priced in is anyone's guess.

A few other ideas to consider as we move into July should the market hold its composure...

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